Doing a quantitative analysis on new protocols and investment opportunities to work during bear markets, it is worth saying that I am always pleasantly surprised when they align with my objectives and fit the strategies I want to apply to achieve those objectives.
My search has focused a lot on several blockchains, which I see are working as if the current market sentiment is not with them. They are undoubtedly the potential players of the next bull market. One of those networks is Polkadot, whether it goes well or not, they are showing me that there is no lack of desire and talent, for me it is a fact to take into account. One of the projects that has won a Parachain is #INTERLAB, and not only that, this same team has also won a Parachain in the Kusama ecosystem, both factors of confidence for me.
At the moment many blockchains and protocols have very low capitalization, a low TVL accumulated within and I have some uncertainty as to how these financial tools will work when the market picks up, since many users and money usually enter in equal parts. We will see at that moment if they overcome the stress situation to which the market will subject them, but also the security of the code itself and the engineering of the SCs is very important. This document is not intended to be an investment or management recommendation, take it as a point of support to prepare your own thesis.
Right now I do not focus on APR or APY, nor on tokemonics, much less on how insecure it is to work and put your liquidity in vaults with so little LTV. I only focus on what they offer, what their design is, what solution they provide and what their differential value is for those of us who manage digital assets. I value very much that they can give us decentralized alternatives to make our time and capital efficient, that I can diversify the capital in strategies that allow me to optimize it a lot. I value that they can connect my liquidity with the largest Defi ecosystem, the EVM, thus being able to explore new investment avenues.
If you are one of those who do not speculate with BTC, and guard it very carefully for the next 6-8 years, but do not refuse to use a percentage of the BTC in your portfolio, to optimize it and earn some extra BTC until the time comes to sell it, INTERLAY is presented as a firm proposal for this purpose.
Thanks to the iBTC token (an over-collateralized token created by Interlay) we can use our BTC on any network while maintaining our exposure to native BTC, while thanks to its 1:1 parity we can use this liquid token on different platforms and DEFI protocols. To do this, we must block our BTC in one of the vaults that Interlay has available, once the BTC is blocked, Interlay mints the iBTC token with a 1:1 ratio (if you don’t want to take the risk of blocking your BTC in a protocol, you can directly buy the iBTC token on a DEX). Once we have our iBTC token, we can start using it in various networks as a deposit, as collateral, in yield farming or staking strategies. To recover our blocked BTC again, you must follow the same process, but in reverse, nothing complicated and very intuitive to do.
What I really want to emphasize is security and risks. Be consistent and be aligned with what you can get in exchange for what you must assume. As a user, look for platforms or protocols that provide protection, both technically (at the code level) and financially (knowing where the profitability is obtained or in this case how to recover the underlying asset deposited, your BTC).
This user protection is based on Interlay’s strict dedication to being as decentralized as possible, for this it worked on 2 key aspects:
1) Becoming an open platform, where anyone can help secure iBTC by running your own Vault.
2) Using a MakerDAO inspired multiple collateral system, in case the vaults misbehave, cutting their collateral and refunding users their BTC or otherwise receiving a refund in the collateral currency at a beneficial rate.
Although it will gradually become available for use on many more platforms and on various networks, you can currently use iBTC on:
I leave links for you to study and draw your own conclusions. I want to be clear and therefore I repeat that I do not focus on APR’s, or look for speculative bargains. I do not consider Defi neither safe nor profitable, much less professional. My daily operations are far from these products, but I want to make clear the importance of researching (and not so much to label or judge anything, good or bad), at this time to continue to perceive that the industry does not stop, and continually seeks to innovate to improve your strategies, whether you are a holder, producer, speculator or trader.